Dow Inc., a leading chemicals company, announced on Thursday that it has experienced a net loss of $105 million, equivalent to 15 cents per share, in the fourth quarter. This is in stark contrast to the income of $613 million, or 85 cents per share, recorded in the same period last year.
However, adjusted per-share earnings for Dow came in at 43 cents, surpassing the 40 cent consensus predicted by FactSet. Sales for the quarter decreased to $10.621 billion from $11.859 billion, but still managed to outperform the estimated $10.377 billion.
It is important to note that the adjusted earnings exclude certain significant factors, such as a non-cash settlement charge related to pension de-risking plans. On top of this, all operating segments of Dow witnessed lower sales due to a slowdown in macro activity. Although there were price and volume gains in packaging & specialty plastics, these positive aspects were counterbalanced by seasonal declines in demand for performance materials & coatings.
Despite these challenging market conditions, Chief Executive Jim Fitterling remains optimistic about the future of Dow. Fitterling highlighted that the company will uphold its commitment to financial and operational discipline throughout 2024. Furthermore, he expressed encouragement by the initial positive signals observed in sectors such as construction, automotive, and consumer electronics.
During premarket trading, Dow Inc.’s stock experienced a modest increase of 0.6%. However, over the past twelve months, the stock has depreciated by 8%, while the S&P 500 has gained 21%.